Record year for Volvo Buses

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The Volvo Group saw an increase in sales for all regions in the fourth quarter of 2011. Profitability was improved and cash flow was described as strong overall.

During the fourth quarter, the European bus market remained at the same low levels as in 2010.

In North America, the total bus market remained weak, while the coach market increased by 25%. In South America, demand remained strong, with approximately 30% higher volumes in heavy buses, compared with 2010.

The market for heavy buses in China grew 13% in 2011, compared with the year-earlier period.

Deliveries in the fourth quarter of 2011 were 4,172 buses, up 29% compared with 3,230 in the year-earlier quarter.

South America accounted for the largest increase.

Order intake for the fourth quarter amounted to 3,941 buses, up 7% compared with 3,677 in the year-earlier period.

During the quarter, Volvo Buses signed its largest order ever in Columbia, 688 buses for Bogota. A new passenger transport range, consisting of one citybus and two coaches, was launched in India in anticipation of sector growth. Net sales for the fourth quarter increased 19% to SEK 6,680m. Adjusted for currency fluctuations, net sales rose 22%.

Operating income improved to SEK 295m and the operating margin increased to 4.4%.